Axis Bank to redeem $600m 4.10% AT1 notes on September 8, 2026
Axis Bank to fully redeem $600 million 4.10% AT1 notes on September 8, 2026. RBI approved the call option exercise in July 2026. Capital position to remain above minimum regulatory requirements post-redemption. Notes were originally issued in September 2021.
*this image is generated using AI for illustrative purposes only.
Axis Bank will redeem its $600 million Additional Tier 1 notes, carrying a coupon rate of 4.10%, on September 8, 2026. The bank exercised the call option after securing Reserve Bank of India approval in July 2026.
Redemption details
The repayment covers the full outstanding principal of the AT1 instrument issued in September 2021. Additional Tier 1 notes are a class of perpetual debt instruments that banks issue to strengthen their capital base under global banking regulations. The scheduled redemption marks the conclusion of this particular capital instrument for Axis Bank.
| Parameter | Details |
|---|---|
| Instrument | Additional Tier 1 notes |
| Principal amount | $600 million |
| Coupon rate | 4.10% |
| Redemption date | September 8, 2026 |
| Issuance date | September 8, 2021 |
Axis Bank's decision to pay off these notes reflects active capital management. AT1 instruments are typically callable at the issuer's discretion on specified dates, subject to regulatory approvals. The bank confirmed to the RBI that its capital position would remain well above minimum requirements following the redemption.
The notice was issued to note holders and the trustee, The Bank of New York Mellon, London Branch, on August 24, 2026. Interest on the notes will cease to accrue on and after the redemption date.
Historical Stock Returns for Axis Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.79% | +1.53% | -1.76% | -10.87% | +14.56% | +67.91% |
Will Axis Bank issue new debt instruments to replace the redeemed AT1 notes, and if so, at what expected coupon rate?
How will the redemption of $600 million in AT1 notes impact Axis Bank's Common Equity Tier 1 (CET1) ratio and overall capital adequacy in the short term?
What does this redemption signal about Axis Bank's confidence in its future profitability and ability to generate internal capital buffers?
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